Promomed

Promomed Group of Companies (Promomed DM LLC) is a representative of the Russian pharmaceutical industry, a participant in the national drug safety system. Develops, manufactures and promotes medicinal products, focusing on optimizing the safety profile of the therapy of the most important, including socially significant diseases.

Due to the biotechnological platform of Biochemist JSC, which operates in full compliance with GMP standards (from the English Good Manufacturing Practice, good manufacturing practice), the company is able to develop and produce any innovative drugs.

Products

As of August 2022, the Promomed portfolio has more than 250 names of drugs, 80% of which are included in the VED list. Some of the drugs are included in the list of methodological recommendations "Prevention, diagnosis and treatment of a new coronavirus infection (COVID-19)" of the Ministry of Health of the Russian Federation. Active work is underway to form a special antique portfolio, which has already included drugs aimed at treating COVID-19 directly of any severity, modern antibiotics and effective anticoagulants. Antique portfel is represented by such products as Esperavir, Areplivir, Enoparin and others.

Performance indicators

2023: Revenue growth by 17.5% to RUB 15.84 billion

In 2023, the Promomed biopharmaceutical company received revenue of 15.84 billion rubles. This is 17.5% more compared to 2022, the result was recorded at 13.48 billion rubles. Such data are given in the financial report published in early June 2024.

It is said that in the total volume of receipts, the sale of medicines brought 15.14 billion rubles. Another 119.06 million rubles fell on organic substances and semi-finished products, approximately 37.21 million rubles - on dietary supplements. Net profit at the end of 2023 amounted to about 3 billion rubles, having decreased by 25.3% on an annualized basis. A significant decrease in the indicator is explained by the factor of payment of windfall tax, as well as large-scale investments in new intellectual developments in 2021-2022.

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The revenue of the Promomed pharmaceutical group in the basic portfolio (excluding sales of drugs for the treatment of coronavirus infection COVID-19) amounted to 14.2 billion rubles in 2023, which is twice as much as compared to 2022. The growth is due to the expansion of the product range and the increase in sales of medicines in strategic therapeutic areas. In 2023, the volume of production of medicines in packages reached 63.27 million units, which is 19% more than in the previous year. The share of drugs against COVID-19 in the revenue structure fell from 57% in 2021 to 10% in 2023, reflecting outstripping sales growth in other key therapeutic areas, such as endocrinology, oncology, neurology, infection control, etc.

Net debt at the end of 2023 amounted to 16 billion rubles against 9.4 billion rubles a year earlier. The increase is due to the completion of the main part of the investment cycle for capital construction and modernization of the production site, investments in increasing market share in key therapeutic areas and expenses for research and development of promising drugs.^[1]

History

2024

IPO on the Moscow Exchange with the attraction of about 6 billion rubles

On July 12, 2024, the Promomed biopharmaceutical company announced medical that to the portal Zdrav.Expert about the initial public offer () IPO and the start of trading in ordinary shares under the Moscow Stock Exchange ticker symbol PRMD. The price of one share was 400, which corresponds to rubles the upper limit of the price range. At the same time, the volume of placement amounted to about 6 billion rubles - the company intends to reserve part of this amount for the purpose of stabilization. According to company representatives, according to the results of the IPO, the company's market capitalization will amount to 85 billion rubles.

source = "Promomed"

The offering attracted interest from various investor groups. According to Promomed, the demand from retail and institutional investors significantly exceeded the supply volume.

The stabilization of the share price at exchange trading in the amount of up to 15% of the volume of shares sold as part of the offer will be valid for 30 days after the start of trading on the Moscow Exchange. Shares for the purpose of stabilization were provided by the largest shareholder of the company, which, according to the results of the IPO, will retain a controlling stake in the authorized capital of Promomed.

"We are announcing a successful IPO of Promomed. A well-thought-out strategy based on development innovations and technological advantages in production, and a sustainable business model of development attracted the largest funds and private investors, who saw the potential for multiple growth of the company and invested in innovations in biopharmaceuticals - a new, rapidly growing branch of medicine, "said Alexander Efremov, General Director of PJSC Promomed.

According to him, the company expects to direct the funds attracted by the IPO, first of all, to the development, registration and launch on the market of a wide portfolio of new innovative drugs in such therapeutic areas as endocrinology, oncology, neurology, immunology, etc. Options will also be considered to partially reduce the debt burden and optimize the capital structure.

The company's shares will be on the second quotation list of securities admitted to trading on the Moscow Exchange.

The incumbent shareholder has assumed obligations limiting the disposal of shares within 180 days of the completion of the IPO.

The company adhered to the previously announced principles, trying to ensure a balanced allocation between retail and institutional investors, as well as key top managers, employees and partners of the company. In particular:

• The allocation to institutional investors amounted to 82.5% of the supply volume;
• Allocation to retail investors amounted to 13.9% of the supply volume:
• Allocation to key top managers, employees and partners of the company amounted to 3.6% of the offer size.

Announcement of the price range of the initial public offering of ordinary shares on the Moscow Exchange

On July 5, 2024, PROMOMED PJSC announced the indicative price range of the initial public offering of ordinary shares listed on the Moscow Exchange.

Preliminary parameters of the Proposal

• The indicative IPO price range is from RUB 375 to RUB 400 per Share, which corresponds to the Company's market capitalization in the range from RUB 75 billion to RUB 80 billion, excluding funds raised under the IPO.
• The size of the Offer will be about 6.0 billion rubles. Thus, as part of the IPO, investors will be offered approximately 7.5-8.0% of the total number of issued Shares, excluding Shares placed in the IPO.
• Within the framework of the Offer, a stabilization mechanism of up to 15% of the base size of the Offer will be structured, which will be valid for 30 days after the start of trading in Shares on the Moscow Exchange.
• The basic size of the Offer includes Shares issued by the Company as part of a cash-in issue.
• The Company plans to use the funds raised as a result of the IPO to develop, register and launch new innovative drugs on the market, as well as to reduce the debt burden and optimize the capital structure.
• According to the results of the IPO, the largest shareholder of the Issuer will retain a controlling stake in the authorized capital of the Company.
• The final Offer price will be determined upon completion of the bid book formation process, which begins today, July 5, 2024, and ends on July 11, 2024.
• The start of trading in the Shares is expected to begin on July 12, 2024 under the ticker symbol PRMD and ISIN RU000A108JF7 after the IPO price is announced.
• As a result of the Offer from July 12, 2024, the Company's Shares will be on the second quotation list of securities admitted to trading on the Moscow Exchange.
• In the event of an IPO, the Company and the existing shareholder will assume obligations limiting the disposal of the Shares within 180 days of the completion of the IPO.
• The Issuer will seek to ensure a balanced allocation between retail and institutional investors, while the limited scope of the Offer may be alloyed to key senior managers, employees and partners of the Company.

Шаблон:Quote 'author = said Alexander Efremov, General Director of PROMOMED PJSC.

2023

Plan to create a biotechnology development center in conjunction with Mordovian State University

The Promomed Group of Companies, together with the Mordovian State University, will create a Federal Center for the Development of Biotechnology. Promomed announced this on July 6, 2023.

The discussion of the creation of the Federal Center for the Development of Biotechnology in Saransk was the key topic of the working meeting of the Head of Mordovia Artem Zdunov and the Minister of Science and Higher Education of Russia Valery Falkov, which was also attended by the Chairman of the Board of Directors of the Promomed Group of Companies Pyotr Beliy and the rector of the Mordovian State University named after N.P..P. Ogarev dmitry Glushko.

Independence from foreign raw materials in the production of drugs is a priority. The future center for the development of biotechnology will ensure a full production cycle, guarantees the drug safety of Russia, - said Artem Zdunov.

The center will provide an opportunity for tripartite interaction between the state, business and science, including with young scientists who create startups. They will be able to work, conduct research and receive data in one place.

We stand in the creation of the Center as an industrial partner. At the same time, the results of the Center's activities will be available to all interested parties. This is such a partnership in the name of patient health. Biologics will be created at the Center, which opens a new era in the treatment of a large group of diseases that were previously considered incurable. By combining our efforts, we will be able to make a real breakthrough in the creation of new drugs, - Pyotr Beliy is sure.

Plan for the creation of a research center and production of biotechnological products at Technopolice Moscow

The Moscow government and the Promomed group of companies agreed on cooperation in the creation of a research center and the production of biotechnological products on the territory of the Moscow Technopolice Special Economic Zone (SEZ). The corresponding agreement was signed by the head of the Department of Investment and Industrial Policy, which is part of the Complex of Economic Policy and Property and Land Relations of the capital, Vladislav Ovchinsky and Chairman of the Board of Directors of the company Pyotr Beliy.

In the SEZ "Technopolice Moscow" at the site "Pechatniki" it is planned to create a research laboratory with a pilot production site for the development of the latest drugs, scaling technological processes, including original ones. And at the site in Alabushevo, the production of domestic biologics will be opened. The project will ensure the production of analogues of foreign drugs for the treatment of vital diseases, as well as create a solid technological base for the development and release of supernovae of domestic original drugs.

This production will become part of the pharmaceutical cluster of the special economic zone. The research unit will be located at the Pechatniki site, and production will be located at Alabushevo. A plot of 3.2 hectares was allocated for the construction of the enterprise. It is planned to create more than 400 workplaces. Investments in the project will amount to about 4.3 billion rubles, - said Vladislav Ovchinsky.

It is planned that at the first stage the capacity of the pilot production site will be about 250 thousand vials of drugs per year.

With the support of the Moscow Government at the Technopolice Moscow SEZ site, the company is creating a center for a full cycle of production of biotechnological drugs of recent generations. Here we plan to develop a line of biotechnological substances. For drug independence, we need our own innovative drugs next-in-class and first-inclass. It is they who will move us forward. And the signing of this agreement is a significant step in this direction, - commented the chairman of the board of directors of the company Pyotr Beliy.

An employee of the Secretariat of the Ministry of Finance of the Russian Federation was sentenced to 12 years in prison for bribes from Promomed

The Zamoskvoretsky Court of Moscow in April 2023 sentenced to 12 years in a general regime colony an employee of the secretariat of the Minister of Finance Anton Siluanov and the former assistant to the Deputy Prime Minister of the Government Arkady Dvorkovich Anastasia Alekseeva. She was found guilty of receiving two especially large bribes and deprived of orders of merit to the Fatherland.

Alekseeva received bribes from the management of Medpolymerprom and Promomed in the amount of about 5.8 million rubles. in the form of tickets and vacation vouchers in Thailand and the Dominican Republic. In exchange, the official was supposed to help promote drugs. Alekseeva did not admit her guilt.

Promomed bought a controlling stake in Berakhim

In early January 2023, it became known that the Promomed group of companies entered into an agreement to acquire 51% of shares in the chemical-pharmaceutical company Berakhim. Read more here.

2022

Opening of high-tech tablet production for 1.8 billion rubles

On December 17, 2022, on the basis of the Biochemist plant, the production site of the Promomed Group of Companies in Saransk, a high-tech tablet production was opened. This was reported to Zdrav.Expert by representatives of the Promomed Group of Companies. Read more here.

Placement of bonds for 2.5 billion rubles on the Moscow Exchange

On August 19, 2022, PROMOMED DM LLC announced that it had successfully placed the third issue of exchange-traded bonds. Against the background of high interest of investors, the volume of output was increased from 1.5 to 2.5 billion rubles, the coupon rate was 11.50% per annum. Both retail and institutional investors participated in the offering.

The nominal value of one bond is 1,000 rubles. The placement price is 100% of the face value. The circulation period is 1092 days. The coupon period is 182 days. The placement method is an open subscription. The placement took place on the Moscow Exchange, the issue is included in the Third level of the listing. The issue meets the requirements for investing pension savings and insurance reserves.

Funds received from the placement of bonds, the company traditionally invests in the development and expansion of production, as well as in the development and registration of new medicines. As of August 2022, the Promomed strategy is based on the balance of creating its own drugs, as well as developing generics with improved characteristics.

Attracting the market financings through the third issue of exchange-traded bonds will allow us to maintain growth rates, provide patients with new high-quality domestic drugs, and the market - farm substances to strengthen drug independence, countries commented Pyotr Beliy Chairman of the Board of Directors of PROMOMED DM LLC.

2021: Production volume - 89.5 million packages of drugs

The volume of production of Promomed Group of Companies in 2021 amounted to 89.5 million packages of drugs for various purposes.

2020: Placement of bonds worth 1 billion rubles on the Moscow Exchange

In December 2020, Promomed first placed bonds on the Moscow Exchange. According to the results of the Russian manufacturer of drugs from Coronavirus COVID-19 attracted 1 billion rubles.

The coupon rate was fixed at 9.5% per annum. The frequency of payment is 182 days. The guarantor for the release is the production site of the holding JSC Biochemist"." The organizers of the placement are, Raiffeisen Bank bank "" and FC OtkritieUniver capital"."

The placement was absolutely market in nature, - said the chairman of the board of directors of Promomed Pyotr Beliy. - A large number of applications were collected, and we have the right to count on good liquidity of our bonds in the secondary market. In the future, the company will continue to work on improving results.

Russian manufacturer of COVID-19 drug Promomed placed bonds worth 1 billion rubles at the Moscow Exchange

Promomed, according to the company, plans to focus on creating innovative antiviral, antibacterial, endocrinological and oncological drugs. The company's investment program includes not only the development and production of active pharmaceutical substances and finished dosage forms, but also the construction of new laboratories, workshops for the production of oncological drugs, and the expansion of the production of tablet forms. In total, Promomed intends to invest up to 7 billion rubles in development by 2023.

By December 2020, original drugs account for about 30% of manufactured products. In total, there are more than 150 names of drugs in the portfolio. Promomed expects to bring more than 100 new molecules to the market, according to the company's investment memorandum.

By the end of 2020, Promomed is one of three domestic manufacturers of the drug with favipiravir, which is recommended for use in any form of COVID-19.^[2]

2016: Therapeutic Areas of Advanced Drugs

Logo in 2016

As of October 2016, the company was promoting prescription and over-the-counter drugs in several therapeutic areas:

• endocrinology,
• rheumatology,
• neurology,
• urology,
• cardiology
• gynecology.

2015: Joining the Biochemist Plant Group

The plant of JSC Biochemist"" became part of the Promomed group in 2015.

2005: Building a Company

Promo-Med was created in September 2005 by Russian and foreign investors.

Notes